Question

The total assets of brandon co. are $900,000 and its liabilities are equal to one-fourth of its total assets. what is the amount of brandon co.'s stockholders' equity? stockholders' equity

Answer 1

900,000 / 1/4 = liabilities
900,000 - liabilities - stockholder's equity

900,000/4 = 225,000
900,000 - 225,000 = 675,000

Answer 2

Answer:

$675,000

Explanation:

Given the total assests of Brandon co. to be $900,000 and its liability is one fourth of its total asset, its liability will be equivalent to:

1/4 × $900,000

= $225,000

Total liability = $225,000

Total assets = $900,000

brandon co. stockholders' equity will be;

Total assets - total liability

= $900,000-$225,000

= $675,000